Dela Cruz, Jillian Mae E. 20171110579 BSMA-2F BSA_3104 The Enron documentary tells the story of how the 7th largest American corporation went bankrupt in a year after falling victim to a scheme that stole its employees of their retirement funds. The Enron firm's perception shifted from favorable to unfavorable. They knew the company was insolvent at the time, had been worthless for years, and had inflated profits due to the failure of their bookkeeping systems, so they began employing other accounting techniques such as "market-market" and HFV accounting, which helped them to make a significant profit. Enron's accountants allowed the company to book more revenue than it actually made, as well as conceal losses and debt off the balance sheet. The corporation was forced to file for bankruptcy as a result of its unscrupulous tactics and poor corporate governance. Besides from entertainment, the documentary's goal is to capture the attention of everyone, particularly those who may be engaged in such circumstances, including businesses, top executives, lawyers, accountants, investors, and employees. The Enron affair brought to light in accounting and corporate fraud, as its shareholders dropped $74 billion in the four years preceding its bankruptcy and its employees lost billions in pension payments. Enron's downfall was the consequence of greed, dishonesty, and ethical blindness caused by a lack of credibility. To conclude, this documentary will act as a lesson for everyone to practice business ethics and principles that will extend the life of the firm and continue to provide employment and opportunities to employees and investors together. Upon watching the documentary, i have learned that ethics is necessary in a particular business due to the reason that ethics will serves as a moral standard inside an organization. In fact, without ethics it can be a risk in every business field just like in Enron’s documentary that shows the company’s bankruptcy. In which the corporate leaders deceived the regulators with fake holdings and off-the-books accounting practices to earn a remarkable profit. Furthermore, due to a dishonest, greedy, and incompetent management, the business might not only affect the company’s operation but also the employee’s occupation. Lastly, it enhances my knowledge and understanding that the accounting transparency, business ethics and data protection is very important in running a business, thus, this documentary really helps me to enlighten my mind to be aware and conscious on my future workplace.
